measures the changes in the average price of consumer goods and services
What will be an ideal response?
consumer price index
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In general does international diversification benefit investors?
A) yes, because it allows them to diversify their risk across many countries B) no, because it creates the additional problem of country risk C) yes, because it enables much greater profits through arbitrage opportunities D) no, because it subjects them to legal regulation in additional markets
An increase in ________ in an open economy of any size leads to ________
A) desired saving; an increase in net capital outflows B) desired investment; a decrease in net capital outflows C) desired saving; an increase in the trade balance D) all of the above E) none of the above
If a perfectly competitive firm cannot avoid economic losses, it should continue to operate in the short run as long as
a. marginal revenue exceeds average fixed cost b. price exceeds average total cost c. the market price exceeds average total cost d. the marginal revenue is less than the average variable cost e. price exceeds average variable cost
Expansionary monetary policy is likely to lead to a depreciation of the nation's currency
Indicate whether the statement is true or false